A Canadian national accused of orchestrating a sophisticated cryptocurrency fraud scheme could face up to 90 years in a U.S. prison if convicted, prosecutors revealed.
Authorities allege that Andean Medjedovic exploited vulnerabilities in two cryptocurrency platforms, Kyberswap and Indexed Finance, between 2021 and 2023, siphoning off approximately $65 million from investors. Medjedovic, 22, has not yet been apprehended, according to the New York Times.
On Monday, the U.S. Department of Justice and the Eastern District of New York’s U.S. Attorney’s Office unsealed the indictment against Medjedovic, which was originally filed in Brooklyn on December 30. Prosecutors described his actions as a “carefully planned” scheme to manipulate automated smart contracts, allowing him to withdraw millions in digital assets.
“Criminals like the defendant who take advantage of new technologies to harm investors will be held accountable no matter where in the world they carry out their schemes,” said U.S. Attorney John Durham.
Sophisticated Scheme and Digital Trail
According to the indictment, Medjedovic allegedly borrowed vast sums in digital tokens to execute deceptive trades, causing smart contracts to miscalculate key financial variables. As a result, he withdrew investor funds at artificial prices, effectively rendering their holdings worthless.
Further evidence points to Medjedovic acknowledging his actions in online messages. In October 2021, he reportedly stated, “I did something very cool but accidentally doxxed myself in the process. I may be on the run forever now … Need some advice about becoming a pirate.” Doxxing refers to the act of publicly revealing personal identifying information online.
In addition to the alleged fraudulent trading, Medjedovic is accused of attempting to launder stolen assets. Prosecutors claim he utilized blockchain bridge protocols to transfer illicit funds across different digital ledgers and employed cryptocurrency mixing services to obscure the source of the stolen assets.
“After one bridge protocol froze several of his transactions, Medjedovic agreed to pay an undercover law enforcement agent posing as a software developer approximately $80,000 to circumvent the bridge protocol’s restrictions and release approximately $500,000 in stolen cryptocurrency,” the indictment states.
Medjedovic also allegedly worked with a co-conspirator to launder proceeds from Indexed Finance, further complicating efforts to trace the stolen funds.
Potentially Decades Behind Bars
Medjedovic faces multiple charges, including wire fraud, attempted Hobbs Act extortion, money laundering conspiracy, and unauthorized damage to a protected computer. Each charge carries significant penalties, with sentences ranging from 10 to 20 years. If convicted on all counts, he could serve up to 90 years in prison.
FBI Assistant Director in Charge James Dennehy warned against romanticizing cybercriminals. “Hackers can at times be painted in a flattering light by pop culture, some admiring their skills and acumen. They’re stealing money that isn’t theirs, and they’re breaking the laws of this country,” he said. “(Medjedovic), along with all the other cyber criminals who believe they’re untouchable, will face justice.”
Past Legal Troubles in Canada
Medjedovic was previously embroiled in a legal battle in Canada. In 2021, Cicada 137 LLC, a company managing cryptocurrency investments, accused him of exploiting Indexed Finance to illegally obtain $15 million in digital assets. Ontario court documents noted that Medjedovic, a prodigious mathematician who earned a master’s degree from the University of Waterloo by age 19, allegedly used his expertise to execute a complex attack against Indexed Finance.
Authorities were granted a warrant to search for evidence, including passwords linked to his alleged crimes. A raid on his parents’ home, where he had previously lived, yielded no results. His parents informed investigators that he had moved out, taking his computer and phone with him. His whereabouts remain unknown.
Medjedovic was found in contempt of court for failing to attend legal proceedings, aside from a single video conference hearing in 2022. A warrant for his arrest remains active.
As U.S. authorities intensify efforts to combat cyber-enabled financial crimes, Medjedovic’s case underscores the global nature of digital fraud and the challenges law enforcement faces in tracking down perpetrators operating across borders.
